Shifting to even smaller advanced semiconductor chips mean equip order delays, report says
The Taylor foundry of Samsung Electronics Co. Ltd. was on schedule to start cranking out some of the most advanced semiconductor microchips in the world by early next year, but a global race to make even smaller chips for AI applications could push production into 2026.
A report on the website of South Korean financial publication ET News indicates that Samsung will hold off on ordering the myriad of machinery that will be used to manufacture chips in Taylor until they decide what will be produced at the more than $17 billion first foundry on the 1,200-acre site.
A decision about the possibility of transitioning the Taylor plant from the 4 nanometer semiconductor chip size to the cuttingedge 2 nm chips would come in the third quarter, according to ET News, which cited “multiple semiconductor insiders” as the source.
The market for faster data processing and less power usage to drive the demands of artificial intelligence means the race to produce the smaller chips sooner in the U.S. and worldwide has intensified.
The 2-nm chips would be used mostly in data processing centers but are expected to make their way into consumer electronics such as smartphones and PCs as AI finds its way into everyday life.
Samsung already was expected to be the first to produce 4-nm semiconductors in the U.S, beating out its largest competitor TSMC of Tawain, which has experienced delays in completing its manufacturing facility in Tucson, Arizona.
A spokesperson for Samsung Austin Semiconductor deferred all inquiries about the 2026 time frame to the CHIPS Program of the U.S. Department of Commerce and did not provide a comment on the possible switch to 2-nm chip production.
Last December, when reports emerged that production wouldn’t begin until 2025, the company issued a written statement to the Taylor Press saying that “The Samsung Taylor fab is on target to be operational by the end of 2024. We cannot comment on timing for mass production.”
Siyoung Choi, president and general manager of Samsung’s foundry division, said last week at an event in San Jose, California, “We are truly living in the age of AI. The emergence of of generative AI is completely changing the technology landscape.” His comments were reported by Korea’s DMR News.
The news outlet said the company plans to roll out mass production of high-performance 2-nm chips with enhanced power delivery in 2027.
In recent months, the Samsung Electronics has landed a $6.6 billion federal grant to incentivize semiconductor production and research in the U.S. It also has hinted at plans to spend about $44 billion on Taylor facilities. The company has indicated it could build up to 11 more foundries between the Taylor and Austin locations, each of which has ample acreage to expand over the next two decades.
